Apt.Residential Developing $187M Sydney Apartment Project Under PGGM Tie-Up

Australia’s Apt.Residential has launched a A$280 million ($187 million) build-to-rent apartment project in Sydney’s Meadowbank area as the first development under its recently announced A$1.5 billion partnership with Dutch pension fund manager PGGM.

Apt.Meadowbank in the inner-northwest suburb will comprise 291 studio, one-, two- and three-bedroom units over four low-rise buildings, Sydney-based Apt.Residential said Thursday in a release. The mixed-use project will also provide more than 4,000 square metres (43,056 square feet) of street-facing retail and amenities.

The partnership acquired the site at 1 Railway Road in April, with early work including demolition already underway and a scheduled completion in the fourth quarter of 2026. The news follows a May announcement in which the state of New South Wales upped its new-home target for Ryde, the local government area that includes Meadowbank, from the previous 8,400-8,900 units to 11,600 by 2029.

“The current rental housing affordability crisis is expected to increase in the short to medium term, as many renters continue to struggle to access quality rental housing that they need,” said Apt.Residential managing director Matt Carolan. “This project is our first step in a long-term vision to add necessary rental supply to the market, tailored to the needs of renters.”

In-Demand Meadowbank

Apt.Residential describes Meadowbank as an “in-demand locale” suited to young professionals, families and mature students. Nearby train, bus and ferry links offer public transport connectivity to the suburb’s population of roughly 5,000.

Meadowbank’s residential vacancy rate sits at a six-year low of just 2 percent, mirroring conditions in broader Sydney as rental housing demand continues to outstrip supply, according to Apt.Residential.

Carolan said the new project would add needed supply to the market and provide a turnkey solution to serve those with more transient housing needs.

“This will reduce upfront costs for renters, allowing them to focus on quality and location,” he said.

In addition to the retail precinct, Apt.Meadowbank promises amenities like shared electric vehicles, co-working areas and a resident lounge as part of a “multifunctional hub” catering to the needs of the community.

First Phase Unfolds

A property fund managed by Netherlands-based PGGM formed the partnership with Apt.Residential in a deal disclosed in May, with the pension investor having made a “substantial” initial commitment to the A$1.5 billion strategy.

Apt.Meadowbank is the first of several build-to-rent projects in development under the tie-up, which is initially focusing on the Sydney market. The partnership’s first phase aims to develop more than 2,500 units.

The upcoming apartments, described by the partners as “premium grade”, will be managed and operated on a long-term basis by Apt.Residential, which was launched in 2022 by Carolan and five other co-founders.

Carolan previously served as development head and chief investment officer for the Australian business of UK student housing provider Urbanest, which was acquired in 2020 by Scape, Australia’s largest student housing owner and operator, in a deal valued at over A$2 billion.